The Reserve Bank of India (RBI) on Friday added the maximum amount a bank can charge customers beyond the mandatory free transaction, with results starting from May 1, 2025 and starting from May 1, 2025. This is the fee (in its ATM transaction) at the National Payments of India of India of India (NPCI) that recently paid for the ATM exchange (NPCI) from its ATM transactions (NPCI), which ships the Atts Atm and Atts, which used 17 ATMs of ATMs since the age of 17; Rs 7 for non-financial transactions. Both growths have increased ATM swap fees and customer fees from 15 May 2025.
In addition, the Reserve Bank of India stated in its notice that the ATM exchange fee (the fee for the bank to provide ATM services to another bank) will now be determined by the ATM network.
The RBI said customers are eligible for five free transactions (including financial and non-financial transactions) from their bank’s ATMs every month. They can also get free transactions (including financial and non-financial transactions) from other bank ATMs, i.e., three transactions at the Metro Center, rather than five transactions at the Mitro Center. It said: “In addition to free transactions, customers may charge a maximum fee of Rs 23 per transaction. This should be effective from 1 May 2025.”
India’s ATM network is largely managed by National Financial Conversion (NFS), a leading multilateral ATM network operated by the National Payment Corporation of India (NPCI).
This means that the ATM network can determine the exchange fees between banks. For ATMs on NFS networks operated by NPCI, the fee for financial transactions will be ₹19 and for non-financial transactions will be ₹7. However, banks may charge customers up to Rs 23 to exceed the free limit, while banks will decide whether to charge customers whether to charge them.
During the 2023-24 and 2022-23 years, public sector banks uniformly lost Rs 925 crore during the 2023-24 and 2022-23 years by providing ATM cash withdrawal services to customers. Of the 12 public sector banks, only 65,000 ATMs of the National Bank of India (SBI) are able to generate revenue. Secretary of State Pankaj Chaudhary told Lok Sabha on Monday that he had earned Rs 331 crore from ATM cash withdrawals in fiscal 24.
As of the end of January 2025, there were 257,000 ATMs nationwide (compared to 2.58 billion at the end of January 2024), 2.21 billion banks are ATMS owned by banks, and 36,000 are white-label ATMs.
Vishal Maru, Global Processing Head, Financial Software and Systems (FSS), said, “The increase in ATM withdrawal charges will help banks and service providers alike, as the additional revenue stream can offset the escalating costs of maintaining and securing ATM networks, especially amid rising inflation and technology demands. It’s an opportunity to reinvest in infrastructure, making ATMs more reliable and efficient. For solution providers like us at FSS, it’s a catalyst for working with banks to deploy cutting-edge innovations to enhance functionality, security and customer experience.”
